The Merlin Dialogues

Dialogue on Level 5 Leadership

Kelly:  So, I’ve been thinking about a problem that I suppose has always been (and will always be) with us, but is more glaring now, at the tail end of the recession.  We have solid, very experienced executives who excel at operational leadership.  They can always be counted on to “take the hill” with whatever resources they’re given, and with revenue and profits under such severe pressure, they’re the current stars.  The thing is, their focus on managing conservatively for today actually gets in the way when we move back into growth mode.  We need them to lead their teams toward innovation, creative investments, increased capacity, new ideas, but that’s not their strong suit.  Feels like we can’t have it both ways, but I’ll bet some companies have worked through this.  Any insights?

Belinda:  One way business writers approach this very common situation is to encourage partnering, so that an analytic left-brain “thinker” works with an imaginative right-brain “innovator” to accomplish what neither can do alone.  For example, Apple’s Steve Jobs successfully functioned as the innovator while leaving the details of running the business to COO Tim Cook.

But I don’t think that completely answers the question.

In what is called the Level 5 model of leadership, based on Jim Collins’ initial research in his book Good to Great, the leaders you describe who thrive in conditions requiring conservative operational leadership are called Experts.  They are great at rational decision making as long as they stay within the area of their expertise.  Doing the same thing repeatedly, and doing it very well, is their strength.  Interestingly, right-brain thinkers can also be Experts, it’s just that their expertise is in a different arena. 

The challenge is to develop beyond simple expertise, which is all about being good at one thing, and move into more flexibility as a leader.  In the Level 5 model, Experts develop into Achievers who are good at getting the task done, then Achievers develop into what are called Individualists, who are more emotionally intelligent.  We know, though, that we need to get the job done and do it in a way that works effectively with people. 
 
Kelly:  Interesting.  I understand what you’re saying about Jim Collins’ model, and I admit some of our more senior leaders have moved beyond being “just” Experts, but actually developing Level 5 leaders in an organization seems like a long run proposition.  What can companies do in the near term to get more aware and connected leadership and energize their teams?

Belinda:  You’re right, it is a long-term commitment.  In the short term, what is called for is a bit of humility and having a look at the research that supports taking a broader view.  A few recommended steps might include:

1.  Bringing younger members and those with alternative perspectives onto the leadership team.

2.  Learning from the success of Southwest Airlines (The Southwest Airlines Way : Using the Power of Relationships to Achieve High Performance by Jody Gittell) and other companies that have cultivated the “people” aspect of leadership.

3.  Engaging an advisor who understands Strategic leadership (a little shameless promotion here) to explore longer-range planning.

By the way, the language of Experts, Achievers, and Strategists is from the work of Susanne Cood-Grueter. She is a contributor to Action Inquiry: The Secret of Timely and Transforming Leadership, which is a good place to begin reading about developmental leadership.

I’d love to hear about what our readers have found useful.   What has your experience been with this question?

Dialogue on Recovery Leadership

Belinda:  Having just returned from the summer board meeting of the non-profit Institute for which I serve as President, I am really appreciating the concept of Recovery Leadership.  When you first coined the term, Kelly, I wasn't sure that it was time to be focusing on recovery instead of just surviving.  This board meeting was all about recovery, as it turns out.  We had a great response to our programs this summer and I realize that we need to be planning for an increase in revenue just a few short months after worrying about whether we can keep the place open.  It is a big 180 turnaround in my thinking. 

Kelly:  Great story, Belinda.  I think the hardest thing in the world is ignoring the obvious threats in front of you, and focusing instead on opportunities that aren’t there yet.  It seems completely irresponsible, but it’s exactly what’s called for when recovering from a crisis, such as a difficult acquisition or the economic recession we’ve all been going through.  Recovery Leadership means setting aside trying to manage the present so you can focus instead on building the future.  There’s a leap of faith involved that makes the difference between leaders and companies who surge ahead in the recovery that inevitably follows crisis, and those remain stuck in the past.  Sounds like your board is on the right track!

Belinda:  What I notice is having to restructure the budget to plan for spending based on several possible levels of revenue and to invest in projects that increase our outreach while also upgrading our facilities.  We are funding a new position to handle increased programming.  All of this is based on seeing the increased interest in our current programs and building toward a stronger economy in the next few years.  If we don’t lay these new foundations we will not be able to respond quickly in the future. 

How does this experience with a non-profit organization compare with corporate environments?

Kelly:  It’s fundamentally the same.  We know of course that scale matters, that large organizations have a more difficult time pivoting quickly than small ones do, but otherwise non-profits face the same challenge as for-profits:  When and how to start creating a dynamic future if you’re still struggling with current problems.  Some things to think about:

1- When a financial crisis ends, the recovery from it is almost always faster and longer-lasting than the decline.  There’s no reason to think that won’t happen this time around.  When it does, what will it mean for your non-profit and what new opportunities might open up for you?  What new opportunities can you create?  The same thing applies in large companies, or even in departments within the company: When the pendulum swings back the other way, what will your (sales/IT/finance/marketing/etc) department do to seize the day?

2- If you haven’t already done so, start accumulating cash.  Building something new will involve spending beyond to your normal operating expenses.  You have to be ready.  No matter how tight things are now, if you want to take advantage of new opportunities, then you need to find ways to reduce your cash outflow and put money in the bank now, while times are tight.  Or you have to be willing and able to borrow, but that’s a whole other conversation.  In a departmental corporate world, this means cutting expenses even deeper, so you’ll be ready to invest.

3- One of the hardest things about tough times is how they affect the people on your team.  Bottom line: they’re a huge downer.  While it’s completely normal for your staff to have 20/20 vision for today’s crisis but be blind to the boom times coming, attitudes like that effectively stifle energy and innovation.  Your role as the leader is to (a) make it clear that you have a plan and the organization will weather the storm, and (b) show them the road ahead, demonstrating your confidence, optimism and excitement about where you’ll all go together.  This is where true leaders really shine and it’s when the next generation of leadership emerges.

Our 2 cents worth….comments invited!

Welcome to The Merlin Dialogues with Kelly Cannon and Belinda Gore

Merlin was advisor to King Arthur and is generally known as a wizard.  We call our blog “The Merlin Dialogues” because we have positioned ourselves as advisors to senior executives, the Kings and Queens of our day.  Some of our advisors questioned aligning ourselves with wizardry and magic.  We kept the name, though – and for an important reason.

Magic, from our perspective, is the result of knowing how things work at deep levels as well as being able to integrate complexity to achieve results.  From what other people experience as chaos, leaders can create high-level synergy.  If you don’t know how to do this, it looks like magic.  In the 6^th century, when King Arthur was said to reign, most of how we live our everyday lives would have been considered magic:  electricity, cars, computers, cell phones, the list is endless. 

The two of us come from different professional backgrounds and bring complementary strengths and perspectives to our work together.  Our blog is a series of dialogues as we explore topics that support building the capacity to thrive in the midst of complexity and creating the synergy that you need to succeed.  These topics include the tools and building blocks for “wizards” who we need as the leaders of today’s organizations.

I’m Kelly.  I’ve spent over twenty years in executive roles in large organizations such as Hewlett-Packard, Nationwide Insurance and Kaiser-Permanente, mostly in information technology, often as CIO.  I’ve taken my teams through all kinds of change, and along the way have learned that long-term success only comes from creating a strong, people-centered, performance-oriented leadership culture.  I bring a hands-on perspective, rather than a theoretical one, and have dealt with a wide variety of challenging business environments, from global growth and expansion to mergers and acquisitions, outsourcing, and downsizing.

I have been successful by working the human systems of organizations through leadership development, team formation and a relentless focus on execution.  I have coached and mentored hundreds of managers and executives into savvy leaders, able to navigate their company’s political waters and bring their teams to success.

And I’m Belinda.  My background as a psychologist has given me a broad perspective on leadership development.  While models and assessments are great as data points, the key is building practices based on how you, as a leader, are uniquely motivated.  I’m interested in coaching leaders by artfully combining research with down-to-earth experience, mixed with the wisdom of the Enneagram system and what we know about how leaders actually develop.

I am an Enneatype Three, so I am motivated by success, my own and my clients’.  I have learned that success means that you love what you do, that you operate in an environment that helps you thrive, and that you are rewarded for your work in the ways that matter to you.  Kelly is an Enneatype Five, motivated by learning and by organizing data and information in unique ways to build innovative approaches to leadership challenges.

Kelly and I are a good team:  we both turned 60 in January, we approach situations quite differently (as you will see) and we really enjoy our conversations.  Kelly lives near San Francisco and I live outside Columbus, Ohio.  We both love to cook and to drive with the top down whenever we can!

Join us for our Merlin Dialogues!